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In California, a written contract is required for home improvement projects costing over $500 to prevent misunderstandings. The contract must detail the work to be done, materials to be used, project timelines, costs, payment schedules, and responsibilities for obtaining permits. It should also include cancellation rights, mechanics liens, and allowable delays. All changes to the contract must be documented in writing and should be clear and easy to understand. Always ensure that verbal promises are incorporated into the contract. Essential details must include specific materials, sizes, colors, and other relevant work information in the contract.